Co-branding: Deliver a one-two punch to the same customer base
General manager, Saddleback Maine, Rangeley
In a tough economy, when marketing budgets are closely scrutinized by every manager or owner, co-branding or brand partnerships can be a cost-effective way to maximize your marketing dollars, reach your current customers and even attract new ones. This year at Saddleback, we had great success in a corporate sponsorship program that allowed us and our partners to share in our brand strength at little cost to either business. In order for this technique to be effective, however, key elements must be in place.
Factor in compatibility. Do your customer bases overlap? Whatever your product is, it should fit in some way with that of the partner organization. Perhaps you sell barbeques — a good partner might be the local maple grilling sauce company. A natural compatibility will allow you to see potential opportunities for the other company’s customer to become your customer as well.
Build an event or promotion around your co-brand. One successful technique to introduce a co-branding relationship is to hold an event that will draw existing and potential customers to you. In March, Saddleback hosted a customer appreciation day with Skowhegan Savings. The bank rewarded their loyal customers with a free day of skiing. We had many first-time skiers take lessons, rent equipment and get out on the slopes on what would normally have been a slower mid-week day.
Preserve customer loyalty. Any communication from a company to a customer has the opportunity to do one of two things: build brand loyalty by providing great service or a product that the customer is interested in, or alienate the customer by communicating a product or service they are not interested in. As always, make sure the co-brand is a good match and be the one to get the news to your customers. Share your mailing list only if customers know and expect that’s what you’ll do.
Choose your partners wisely. A goal of both parties should be to enhance the value of their particular product or service. Do you both share similar values of integrity, quality and customer service? In August, Saddleback teamed up with Sebago Brewing Co. to launch Saddleback Ale, which was done in conjunction with the Saddleback Mountain Bluegrass Festival that provided a forum in front of 2,000 people to sample the co-branded product. If you choose a partner who doesn’t have a good reputation, it could hurt your brand. Conversely, partnering with a company that has a consistent, stellar reputation can enhance your brand.
Utilize your branding partner’s media outlets. When choosing a co-branding partner, evaluate how they market to their client. For instance, if your business does not market heavily in television, look for a branding partner who does. Also, offering special deals via social media can result in both companies growing fans in these channels.
Measure your brand partnership results. As with any business project, the key to increased success and continued growth is being able to measure the effectiveness of the venture. If it worked, great, it may be a perennial way to boost sales. If not, determine what went wrong and fix it or decide to break up. Co-branding partnerships can be a great solution to save marketing dollars and increase your customer base. In Maine, we have a great opportunity to collaborate with other small businesses that share the same customers, interests and geography. Look around and see what opportunities you have and create win-win situations in our business community.
Perspectives welcomes all viewpoints on the Maine economy. Submissions should be under 650 words and e-mailed to editorial@mainebiz.biz. Please include your name, title, company and where your company is based.
Most Recent
Most Recent
Comments